Chinese logistics conglomerate makes investment in Trump meme token
Addentax Group, a Chinese logistics giant, is tossing around $800 million in cryptocurrencies like Bitcoin and TRUMP tokens. And yes, you read that right – Trump's meme coin. Now, whether this thang is a sneaky tariff negotiation tactic or just another wild ride in CryptoLand remains up in the air.
This juicy deal's details are as vague as your ex's feelings. The press release only mentioned TRUMP and good ol' Bitcoin, with no word on how much dough will be spent on each.
The Controversial TRUMP Coin Chronicles
Since 2021, when China banned crypto mining like it was a baby's pacifier, the crypto scene in this economic powerhouse has been woefully weak. However, there have been signs of a loosening grip.
Enter Addentax, one of China's heavy hitters, considering splurging big bucks in this digital realm. If they pull off this investment, it would be quite the headline.
The statement made it clear that Addentax wants Bitcoin. They're in talks with some mystery token holders who are sitting on around 8,000 BTC. That alone would total $800 million, but these cats aren't one-trick ponies.
In the spirit of diversifying, Addentax floated the idea of adding TRUMP to the mix. And as you might imagine, TRUMP's coin price saw a small bump after the news dropped. It rose from $12.50 to $13.
But instead of cheers, Addentax's stock took a dive. Shares dropped more than 8% following the announcement. Seems institutional investors are not too keen on the company's foray into cryptocurrencies.
Rumors swirl that this purchase could be connected to the US-China trade talks. Addentax is deep in the logistics biz, handling cross-border textile shipments for clients worldwide. Naturally, Trump's tariffs have the potential to cause quite a stir in their operations.
Just two weeks ago, another logistics company spent $20 mil on TRUMP – all in the name of winning favors. After all, the Trump coin is already stirring up a shitstorm of controversy. But some say it might've been a smart move.
Could purchasing TRUMP tokens somehow smooth things over with the tariffs? Addentax's statement didn't offer any clues. It mainly touched on Bitcoin and beefing up institutional relationships with "crypto influencers."
In his speech, CEO Hong Zhida shared Addentax's thoughts on cryptos:
"This initiative supports the Company's broader blockchain strategy by... introducing strategic investors with experience in the crypto ecosystem. We believe that certain established digital assets may serve as a stable component of the Company's long-term holdings, given their liquidity and increasing institutional interest over recent years," he claimed.
However, can't help but notice that a Chinese firm mentioned TRUMP... and nothing else in the altcoin world. If liquidity and institutional interest were top priorities, they could've covered all their bases with plenty of other options.
By spending sizable sums on TRUMP, Addentax might guarantee a way to manage their core business while diving into the Web3 realm. ButWe'll just have to see how this little drama unfolds.
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This article is provided for informational purposes only and does not constitute financial advice. Readers should verify facts independently and consult with professionals before making any decisions based on this content.
References
- Addentax Group's Crypto Investment
- Forbes: Justin Sun's TRON and Controversy
- GD Culture Group's Crypto Investment
- Reuters: Trump's Effort to Keep TikTok Operating in the US
- The controversial TRUMP coin has caught the attention of Addentax Group, a Chinese logistics giant, who is planning to invest a considerable amount, estimated to be around $800 million, in cryptocurrencies, including TRUMP and Bitcoin.
- After China banned crypto mining in 2021, the crypto scene in the country has been somewhat weak, but there have been signs of a loosening grip, as evidenced by Addentax's interest in venturing into the digital realm.
- Addentax is in talks with mysterious token holders who are in possession of approximately 8,000 Bitcoins, a move that would solidify their investment in Bitcoin alone, totaling $800 million.
- In an effort to diversify, Addentax has also floated the idea of investing in TRUMP tokens, which saw a slight increase in price after the news was announced.
- However, Addentax's stock experienced a decline of more than 8% following the announcement, suggesting that institutional investors might not be too thrilled about the company's foray into cryptocurrencies.
- The purchase of TRUMP tokens could potentially be connected to the US-China trade talks, given that Addentax is deeply involved in handling cross-border textile shipments for clients worldwide, and Trump's tariffs could have a significant impact on their operations.
